Complete the initial photo quest, as detailed in D-2: Windfall Island. You need to snap three black and white photos for Lenzo. Once you have done that, Lenzo will give you the Deluxe Picto Box in the Wii U version of Wind Waker HD right away.

If you're playing the GameCube version, you first need to travel to Forest Haven and catch a Firefly with an empty bottle inside the forest. Bring the Firefly to Lenzo and he will upgrade the camera to take color pictures. Lenzo will also give you a Joy Pendant as a reward. Since the Forest Firefly is not needed in the Wii U HD edition, Lenzo will only give you a Joy Pendant.

Sadly, in the GameCube version, the upgraded camera can still only hold three shots, a limitation that becomes very annoying when you're trying to complete the Nintendo Gallery. The Wii U version's Deluxe Picto Box can hold 12 pictographs.

In addition to having photos of characters and enemies turned into figurines, the color camera is also needed for the Picto Box Quest.